Any organization will have a strategy which defines what business it is in or wants to be in, and the kind of organization it is or wants to be .It is set by top management, often in collaborations with lower-level managers. Strategy outlines the organizationâ€™s goals and the means for attaining these goals. It might, for example direct the organization toward reducing costs, improving quality, expanding market share, or shrinking the size of its overall operations .The strategy that an organization is pursuing at any given time, will influence the power of various work groups which, in turn, will determine the resources that the organizationâ€™s top management is willing to allocate to it for performing its tasks. To illustrate, an organization that is retrenching through selling off or closing down major parts of its business is going to have work groups with a shrinking resources base, increased member anxiety, and the potential for heightened intra group conflict.
Organizations have authority structures that define who reports to whom, who makes decisions, and what decisions individuals or groups are empowered to make .This structure typically determines where a given work group is placed in the organizationâ€˜s hierarchy, the formal leader of the group, and formal relationships between groups. So, while a work group might be led by someone who emerges informally from within the group, the formally designated leader—appointed by management —has authority that others in the group donâ€™t.
Organizations create rules, procedures, policies, and other forms of regulations to standardize employee behavior. If McDonald has standard operating procedures for taking orders, cooking hamburgers, and filling soda containers, then the discretion of work group members to set independent standards of behaviors is severely limited. The more formal regulations that the organization imposes on all its employees, the more the behavior of the work group members will be consistent and predictable.
Some organizations are large, profitable, with an abundance of resources .When organizations have limited resources, so do their work groups. What a group actually accomplishes is, to a large degree, determined by what it is capable of accomplishing .The presence or absence of resources such as money, time raw material, equipment— which are allocated to the group by the organization—have a large bearing on the groupâ€™s behavior.
Personnel Selection Process
So the criteria that an organization uses in its selection process will determine the kinds of people that will be in its work groups. The terms of the unionâ€™s collective bargaining contract will play a key part in specifying who is hired as well as acceptable and unacceptable behaviors of work group members.
Performance Evaluation and Reward System
Another organization-wide variable that affects all employees is the performance evaluation and reward system. Since work groups are part of the larger organizational system, each group memberâ€™s behavior will be influenced by how the organization evaluates performance and the kinds of behavior that deserve to be rewarded.
Every organization has unwritten culture that defines for employees standards of acceptable and unacceptable behavior. The employees after a few months of work know very well about the organizational culture, dress culture, what behavior is accepted and what is not and what are the Rules to be followed.
Physical Work Setting
Finally, we propose that the physical work setting that is imposed on the group by external parties has an important bearing on work group behavior. Architects industrial engineers, and office designers make decisions regarding the size and physical layout of an employeeâ€™s work space, the arrangement of equipment, illumination levels, and the need for acoustics to cut down on noise distractions.